The Chalco, Mexico-based company, which specializes in producing alloys with zinc and aluminum bases for the automotive industry, will invest $7.56 million to construct and equip a 36,000 square-foot facility on its 11-acre campus in 1200 Enterprise Site, a state certified shovel ready site in Shelbyville. As part of the project, Faeza plans to purchase new manufacturing machinery and information technology equipment for the facility.
“Indiana has a global reputation as one of the top places in the United States to do business and we’re happy to have another international leader like Faeza call Indiana home,” said Governor Mitch Daniels. “Our low-tax policies, highly-skilled workforce and expansive infrastructure continue to keep Indiana at the top of the list of best places to do business in the nation.”
The company, which currently has four facilities in Mexico, plans to begin hiring production and support associates next spring in preparation for the anticipated opening of the facility in the summer of 2013.
“Faeza wants to successfully grow in the aluminum smelting market, that’s why Faeza Group has in its business plan this project bringing a new plant for molten aluminum to Indiana,” said Gustavo Gonzalez Ayala, general manager of Faeza. “This project, with the help of Indiana’s friendly business climate and location, aims to supply molten and ingot aluminum alloys to further meet our customer’s requirements who are located in the area.”
Founded in 1985, Faeza’s production of alloys with zinc and aluminum are manufactured for the automotive industry and products such as carburetors, door locks and transmission cases. Faeza’s new facility will place the company in close proximity to its primary customer, Ryobi Die Casting, also in Shelbyville.
The Indiana Economic Development Corporation offered Faeza Alloyers U.S.A. up to $200,000 in conditional tax credits and up to $50,000 in training grants based on the company’s job creation plans. These tax credits are performance-based, meaning until Hoosiers are hired, the company is not eligible to claim incentives. The city of Shelbyville is considering additional property tax abatement at the request of the Shelby County Development Corporation.
“We welcome our newest international industrial partner to Shelbyville and look forward to a long and successful relationship with Faeza. Gustavo Gonzalez and his team have been a pleasure to work with throughout the site location process and the jobs that will be created will be a welcome addition to the city,” said Shelbyville Mayor Tom DeBaun. “As an added benefit, Mr. Gonzalez has chosen a local contractor in Runnebohm Construction to oversee and build his project thus having an almost immediate and positive effect on the local economy.”
Faeza is the latest international manufacturer to announce its decision to locate its first U.S. facility in the Hoosier State. In July, Kiel NA, a German manufacturer of seating systems for the transportation industry, announced plans to locate its first North American facility in Elkhart, creating more than 60 new jobs by 2015.
FAEZA Group was founded in 1985. Today, we are one of the leading companies in the alloys fabrication in zinc and aluminum base industry. Our processes consists of melting the base metals and then alloy them with some other components to obtain the specific metal from the different Zinc and Aluminum alloys that our clients request.
Created by Governor Mitch Daniels in 2005 to replace the former Department of Commerce, the Indiana Economic Development Corporation is governed by a 12-member board chaired by Governor Daniels. Dan Hasler serves as the chief executive officer of the IEDC.
The IEDC oversees programs enacted by the General Assembly including tax credits, workforce training grants and public infrastructure assistance. All tax credits are performance-based. Therefore, companies must first invest in Indiana through job creation or capital investment before incentives are paid. A company who does not meet its full projections only receives a percentage of the incentives proportional to its actual investment. For more information about IEDC, visit www.iedc.in.gov.